An Australia based gaming company was set to change hands by end last year. However, the latest report on this is that the deal that could have seen Blue Whale Entertainment Propriety Limited become the new major shareholder of Aquis Entertainment is facing termination.
According to news post shared by the calvinayre.com, the deal was announced in the first quarter of last year, but since then there has not been much progress. The agreement was made a few weeks after Blue Whale took over Canberra Casino the previous December. The reason behind the delay is clear to the public. Besides facing serious regulatory issues, the deal might have to be abandoned altogether particularly because rumors say it wasn’t an actional idea to start with.
As per the arrangement, Blue Whale was to take over 86.99 percent of Aquis shares. What’s seems explained, however, is that the deal had been unanimously passed by Aquis shareholders and both parties had complied with the requirements of this move. However, just recently, Aquis filed a case with the Australian Securities Exchange saying the Australian Capital Territory (ACT) had not yet completed reviewing the written agreement.
Originally, the deal was to be completed and possibly closed by December 22, 2019. It would only be called off after notice had been given, and if no regulatory approval was issued. With the deadline past overdue, a notice could be roaming in the near future.
On its end, Aquis has been busy and actively seeking to get an extension for the termination date. In fact, they were even planning to get some legal advice on the same. In particular, they’ve been trying to get more time for the commission to review the agreement efficiently before giving is approval. On the other hand, Aquis understands the outcome if an extension is denied.
Aquis asserts that in the event that the extension is denied, the two companies would have to go back to the drawing board to see their options, which are actually limited. They would even have to terminate the agreement if worst comes to worst.
It also added that the two companies have been working hand in hand, in an effort to engage the commission to give its approval. To this point, Aquis reports the ACT commission has made quite some progress in its review but it is not yet complete.
Aquis was bought in 2014 by a Hong Kong businessman, Tong Fung, for $4.1 million. Part of Aquis assets includes Canberra Casino, which has been struggling to break even. The sale was part of Aquis’s effort to try and solicit money to inject back into the casino.
The money, if the deal goes through, is expected to be used for renovation and upgrade of the casino. Unfortunately, the regulators do not seem much bothered to have the deal sealed. It could be frustrating on Aquis end, but they do not have a choice other than following the commission regulations.